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Arch Resources Inc (ARCH) Stock Fundamental Analysis

NYSE:ARCH - New York Stock Exchange, Inc. - US03940R1077 - Common Stock - Currency: USD

134.83  +0.94 (+0.7%)

After market: 133.13 -1.7 (-1.26%)

Fundamental Rating

6

Taking everything into account, ARCH scores 6 out of 10 in our fundamental rating. ARCH was compared to 151 industry peers in the Metals & Mining industry. ARCH gets an excellent profitability rating and is at the same time showing great financial health properties. ARCH is cheap, but on the other hand it scores bad on growth. These ratings could make ARCH a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year ARCH was profitable.
ARCH had a positive operating cash flow in the past year.
ARCH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARCH had a positive operating cash flow.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

1.2 Ratios

ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
ARCH has a better Return On Equity (12.43%) than 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 8.85%, ARCH belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARCH is significantly above the industry average of 8.84%.
The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

ARCH's Profit Margin of 6.69% is fine compared to the rest of the industry. ARCH outperforms 75.51% of its industry peers.
ARCH's Profit Margin has improved in the last couple of years.
ARCH has a Operating Margin of 7.76%. This is in the better half of the industry: ARCH outperforms 62.59% of its industry peers.
In the last couple of years the Operating Margin of ARCH has grown nicely.
ARCH has a Gross Margin of 17.11%. This is comparable to the rest of the industry: ARCH outperforms 52.38% of its industry peers.
ARCH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
ARCH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARCH has more shares outstanding
ARCH has a better debt/assets ratio than last year.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

ARCH has an Altman-Z score of 4.29. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
ARCH's Altman-Z score of 4.29 is fine compared to the rest of the industry. ARCH outperforms 65.99% of its industry peers.
There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B

2.3 Liquidity

A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
ARCH has a Current ratio of 2.01. This is comparable to the rest of the industry: ARCH outperforms 46.26% of its industry peers.
ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
ARCH has a Quick ratio (1.41) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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1

3. Growth

3.1 Past

The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
The Revenue for ARCH has decreased by -17.03% in the past year. This is quite bad
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
The Revenue is expected to decrease by -7.19% on average over the next years.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. Valuation

4.1 Price/Earnings Ratio

ARCH is valuated correctly with a Price/Earnings ratio of 13.13.
Based on the Price/Earnings ratio, ARCH is valued a bit cheaper than 79.59% of the companies in the same industry.
ARCH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
ARCH is valuated cheaply with a Price/Forward Earnings ratio of 6.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 89.12% of the companies listed in the same industry.
ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

ARCH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 77.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARCH is valued cheaper than 87.76% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
ARCH's earnings are expected to decrease with -5.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
ARCH's Dividend Yield is a higher than the industry average which is at 3.16.
With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

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Arch Resources Inc

NYSE:ARCH (1/13/2025, 8:04:00 PM)

After market: 133.13 -1.7 (-1.26%)

134.83

+0.94 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners99.38%
Inst Owner Change8.23%
Ins Owners2.44%
Ins Owner Change-279.25%
Market Cap2.44B
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
P/S 0.91
P/FCF 11.58
P/OCF 6.2
P/B 1.69
P/tB 1.69
EV/EBITDA 6.26
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Profitability
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROCE 10.52%
ROIC 8.85%
ROICexc 10.16%
ROICexgc 10.16%
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
FCFM 7.87%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Debt/EBITDA 0
Cap/Depr 117.1%
Cap/Sales 6.83%
Interest Coverage 250
Cash Conversion 108.14%
Profit Quality 117.55%
Current Ratio 2.01
Quick Ratio 1.41
Altman-Z 4.29
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%